There's
more than meets the eye in the silver market by Mike Sussman
Gold
and silver bullion have served as primary monetary metals.
They are convenient, divisible, have utility value, and cannot
be created by law. However, unlike gold, silver is mainly
used as an industrial commodity. For the past three decades,
industrial demand for silver has grown. The reason for this
growth is that silver is strong, malleable, and ductile. It
has great electrical and thermal conductivity; it is sensitive
to and highly reflective of light; and it can endure extreme
temperatures. Silver is also used in health care products
because it has antibacterial qualities. It prevents bacterial
infections in burn victims. Some wound dressings use a layer
fabric containing sliver to prevent secondary infections.
It is being used on a worldwide basis for its antimicrobial
qualities.
Most of the world’s easily available
silver has already been consumed for industrial use. An estimated
95% is gone forever. There were approximately 12 billion ounces
of silver in the world in 1900. Today there are about 300
million ounces of refined sliver. At the current supply level
and price, it would take about four billion dollars to purchase
all of the above-ground silver in the world.
World conditions are bullish for the silver market. With increasing
geopolitical instability and the macroeconomic environment
in which we live, silver’s historic role as a store
of value will increase. In addition, there is increasing demand
because industrial use is greater than available new supplies.
Silver prices have been extremely volatile, which makes it
attractive as an investment vehicle. Purchased over time using
dollar-cost averaging or on downward dips in price, the accumulation
of silver can add value and diversity to a portfolio in uncertain
times. It is also useful as an inflation hedge and an insurance
policy against economic risk. There are unparalleled opportunities
for future growth because of silver’s unique properties
and value.
In addition to being available in 1,000 ounce silver bars,
sliver is also available in 100 ounce bars, which are more
convenient to transport and store. Ninety percent silver coin
is also available for bullion purposes from many coin dealers
and can be purchased in bags of $1,000 and its divisions.
Various modern mints have produced .999 fine silver coins.
Since 1986, the United States Mint has produced the American
Silver Eagle series. It is a .999 silver bullion coin that
is available in both uncirculated and proof forms. The American
Silver Eagle coin’s obverse is a modification of Adolph
A. Weinman’s Walking Liberty dollar. The reverse is
a heraldic eagle that was modified by John Mercanti. It weighs
31.101 grams, is made of .9993 silver and .0007 copper. Its
net weight is one ounce of pure silver. Its diameter is 40.6
mm; and it has a reeded edge. These are legal-tender bullion
coins with a one dollar face value. Their content and purity
are guaranteed by the federal government. The American Silver
Eagle is the only silver coin allowed to be used in IRA accounts.
We like brilliant
uncirculated rolls of pre-1964 US silver coins , brilliant
uncirculated sets of Franklin
Half Dollars and brilliant uncirculated rolls
of Morgan and Peace silver dollars as a great way to invest
in silver and the kind of basic silver Numismatic coins
that almost everybody likes. Click
Here to view Franklin Sets